11 Signs You’re Doing Better Than the Average American Over 65

The word “retirement” conjures up images of days spent golfing, traveling, and visiting grandchildren. However, the reality for many seniors is much different.

Many Americans aged 65 and over are concerned about fixed incomes, increasing health care costs, and the double-edged sword of lingering debt and rising expenses.

If you’re worried that you’re not as well off as you’d like once you hit 65, you may be doing better than you realize. Curious about your financial fitness compared with your peers? Here are 11 indicators to tell how you’re doing financially against others in your age group.

According to a LendingTree study, $7,484 was the average credit card balance for consumers aged 65 and older.

This was lower than that of the general population ($8,400), but these debt payments can be hard to make once you’re past your working years or living on a fixed income.

The average monthly benefit as of June 2024 was $1,918.

The amount of your monthly Social Security payment during retirement depends on how much you earned during your working years and at what age you elected to receive payments. The maximum benefit was $4,873 in 2024.

Data from the Social Security Administration show that among beneficiaries, 37% of men and 42% of women receive 50% or more of their income from Social Security.

Additionally, 12% of men and 15% of women beneficiaries report that Social Security represents 90% or more of their total income.

If you’ve saved enough to supply yourself with more than your Social Security deposit during retirement, you’re probably glad you did.

This is the median income for Americans age 65 and older. This level of income isn’t exactly living in the lap of luxury. So even if things feel tight, if you’re above this number, you’re doing better than most.

The median income for seniors is about half the amount of their annual expenses, which doesn’t bode well. If you’re over 65 and living within your means, you’re succeeding financially.

Just the act of retiring at 65 means you’re doing well for yourself. As of 2023, 11.2 million Americans aged 65 and older were either still in the labor force or actively looking for work. That translates to about 19% of them.

As of 2021, 45% of older Americans spent a third or more of their income on housing-related expenses. Of those housing-burdened seniors, homeowners spent about 37% and renters spent 76% of their income on housing.

Paying off your home or finding an affordable rental will put you ahead financially during your golden years.

According to Federal Reserve data, 29.3% of people 65 to 74 still have a mortgage. The median amount of mortgage debt is $113,000.

Paying off your house relieves you of your monthly mortgage obligation and will give your budget much more wiggle room.

It’s no secret that health care comes at a hefty cost for most Americans, and even more so for people over 65, many of whose health is declining.

In 2022, consumers 65 and older paid an average of $7,540 each year in out-of-pocket health care costs. Those who can manage to keep medical expenses low are those who are both healthier and wealthier.

The median worth of a senior’s (age 65-74) assets is $120,300 as of 2022. This includes stocks, bonds, real estate, cash-value life insurance, CDs, retirement accounts, and other types of assets.

If you’ve amassed more assets than this over your working years, you’re definitely ahead of your peers.

This financial indicator is calculated by subtracting what you owe in debt (credit cards, car notes, mortgages, etc.) from the value of your assets (retirement accounts, savings, real estate, etc.).

The median net worth for people aged 65-74 is $410,000, so if yours is greater than this, you’re sitting pretty.

While comparisons like these are fun, the real question is “Do I have enough resources to meet my needs and wants?” For instance, you may have no debt whatsoever. But if you have to supplement your Social Security income, that achievement won’t matter much.

Whether preparing your finances for your golden years or managing your money in retirement, the same principles apply: Live within your means, pay down your debts, and boost your savings so you can live comfortably for many years to come.